Officers from HMRC, supported by the Police Service of Northern Ireland, searched a number of outbuildings at a private address in the Cullyhanna area. The plant, capable of producing nearly eleven million litres of illicit diesel, evading over £7 million in taxes and duty a year, was dismantled.
Pat Curtis, HMRC National Oils Co-ordinator, said: "Every illegal laundering operation typically generates tonnes of toxic waste, which involves significant environmental and safety issues. As taxpayers and local ratepayers, not only are we missing out on the stolen tax going into the pockets of the criminals, we are also paying the substantial clean up and disposal costs.
"Buying illicit fuel funds crime and supports and encourages these dangerous activities within our communities. The only winners are the criminals. I would urge anyone with information on fuel misuse in their area to contact our free telephone hotline 0800 59 5000 and contribute to the fight against this criminality."
Pumps, tanks and equipment were removed from the site and investigations are continuing.